If the Democrats control both houses of Congress and the presidency, income taxes for higher wage earners, capital gains taxes and inheritance taxes may increase, he added. If Trump is re-elected, but the House remains in Democratic hands, Trump may not be able to do any more tax reductions. “But delay, dilution and defeat are typical for taxes.”
Featherngill advised investors to determine their cash flow requirements now. “Analyze your tax position and prioritize your objectives for the short and long term. That way you can intentionally make your money work for you.
“If you think taxes will increase in future, you should consider converting traditional IRAs to Roth IRAs,” she said. “Clients should talk to their advisors now to prepare for whoever wins the election.”
Pegg said investors also should be considering what kind of legacy they want their wealth to create and whether they want to do that before or after death.
“Use the tools that are available now. As an example, you can give up to $15,000 each year to as many people as you want without out paying gift taxes,” he added. Trusts can be devised to make the money do what the donor intends.
Liersch said it is a good thing that the pending election is giving clients the inspiration to think about these issues now.